Like barcode and voice data entry, RFID is a contactless information acquisition technology. RFID systems are wireless, and are usually extremely effective in hostile environments where conventional acquisition methods often fail. RFID has established itself in a wide range of markets, such as, for example, the high-speed reading of railway containers, tracking moving objects such as livestock or automobiles, and retail inventory applications. As such, RFID technology has become a primary focus in automated data collection, identification and analysis systems worldwide.
Of late, companies are increasingly embodying RFID data acquisition technology in a fob or tag for use in completing financial transactions. A typical RFID fob is ordinarily a self-contained device, which may take the shape of any portable form factor. The RFID fob may include a transponder for transmitting information during a transaction. In some instances, a battery may be included in the fob to power the transponder, in which case the internal circuitry of the fob (including the transponder) may draw its operating power from the battery power source. Alternatively, the fob may gain its operating power directly from an RF interrogation signal. U.S. Pat. No. 5,053,774, issued to Schuermann, describes a typical transponder RF interrogation system which may be found in the prior art. The Schuermann patent generally describes the powering technology surrounding conventional transponder structures. U.S. Pat. No. 4,739,328 discusses a method by which a conventional transponder may respond to an RF interrogation signal. Other typical modulation techniques which may be used include, for example, ISO/IEC 14443 and the like.
In the conventional fob powering technologies used, the fob is typically activated upon presenting the fob into an interrogation signal. In this regard, the fob may be activated irrespective of whether the user desires such activation. Alternatively, the fob may have an internal power source such that interrogation by the reader for activation of the fob is not required.
One of the more visible uses of the RFID technology is the introduction of Exxon/Mobil's Speedpass® and Shell's EasyPay® products. These products use transponders, placed in a fob or tag, which enable automatic identification of the user when the fob is presented at a merchant's Point-of-Sale (POS) device, for example, when attempting to complete a transaction. During the transaction completion, a fob identifier is passed from the RFID fob to the POS, which delivers the information to a merchant system for transaction completion.
To complete the transaction, the merchant system may typically pass the fob identifier to a third-party server database. The third-party server may reference the identification data to a customer (e.g., user) credit or debit account. In an exemplary processing method, the third-party server may seek authorization for the transaction by passing the transaction and account data to an authorizing entity, such as for example an “acquirer” or account issuer. Once the server receives authorization from the authorizing entity, the authorizing entity sends clearance to the POS device for transaction completion.
In addition to sending the information to an issuer system for authorization, the merchant system may store information related to the fob (e.g., fob identifier authorization) in a merchant system database for later reference. For example, where the transaction device user is a repeat customer, the transaction device user may wish to complete the transaction using transaction account information previously submitted to the merchant system. Since the account information is stored on the merchant system, the user need not provide the information to a merchant to complete subsequent transactions. Instead, the user may indicate to the merchant to use the transaction account information stored on the merchant system for transaction completion.
In another typical example, the merchant system may store the transaction account information for later reference when the transaction device user establishes a “recurring billing” account. In this instance, the merchant may periodically charge a user for services rendered or goods purchased. The user may authorize the merchant system to seek satisfaction of the charge using the transaction account information stored in the merchant system. The merchant may thereby send a transaction request regarding the charge to an account provider, or a third-party server for transaction authorization and satisfaction.
Because RFID transactions involve passing transaction account information from the RFID transaction device to a merchant in a contactless environment, the account information is susceptible to being intercepted by an unauthorized receiver and used for fraudulent transactions. To lessen the occurrence of fraudulent transactions in the RFID environment, RFID transaction device issuers have focused much effort on securing the information passed in RFID transactions. Many of the efforts have focused on securing the transaction account or related data during transmission from the user to the merchant, or from the merchant to a third-party server or account issuer system. For example, one conventional method for securing RFID transactions involves requiring the device user to provide a secondary form of identification during transaction completion. The RFID transaction device user may be asked to enter a personal identification number (PIN) into a keypad. The PIN may then be verified against a number associated with the user or the RFID transaction device, wherein the associated number is stored in an account issuer database. If the PIN number provided by the device user matches the associated number, then the transaction may be cleared for completion. In this way, the merchant (and account issuer) is relatively assured that the transaction device user or the account information passed to the merchant is valid.
Although current methods are useful in authorizing the information provided to the merchant, one problem with the conventional efforts is that they typically do not focus on the ways to secure the transaction account information after the information is received by and stored on the merchant system. As noted, the merchant may typically store on a merchant database the information received from the transaction device during a transaction. Such information may be sensitive information concerning the fob user or the transaction device user's account. Should the transaction device user's sensitive information be retrieved from the merchant system without authorization, the user or account issuer may be subjected to fraudulent activity. More importantly, the account issuer's ability to secure the sensitive information while it is stored on the merchant system is limited by the merchant's security measures used in securing its merchant system database. Consequently, the account issuer often has little influence over the security of the account information once the information is provided to the merchant system.
As such, a need exists for a method which permits the account issuer to have a significant influence on the security of the transaction account information stored on a merchant system. A suitable system may allow an account issuer to manage the transaction account information while leaving the information stored on the merchant system in tact.